House File 2286 - Introduced HOUSE FILE 2286 BY HUNTER A BILL FOR An Act relating to the regulation of employment agencies and 1 making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5603YH (2) 85 je/rj

H.F. 2286 Section 1. NEW SECTION . 94A.3A Employee notice. 1 1. An employment agency shall provide to each employee 2 referred for employment notice of the following: 3 a. The name, address, electronic mail address, and telephone 4 number of the following: 5 (1) The employment agency, or the contact information of the 6 employee of the employment agency facilitating the placement. 7 (2) The employment agency’s workers’ compensation carrier. 8 (3) The employer. 9 (4) The commissioner. 10 b. A description of the position and whether it will require 11 any special clothing, equipment, training, or licenses, and 12 any costs that will be charged to the employee for supplies or 13 training. 14 c. The designated payday, the hourly rate of pay, and 15 whether overtime may occur and be paid. 16 d. The daily starting time and anticipated end time and, if 17 known, the expected duration of employment. 18 e. Whether any meals will be provided by the employment 19 agency or employer and the charge for such meals, if any, to 20 the employee. 21 f. Details of the means of transportation to the work 22 site and any fees that will be charged to the employee by the 23 employment agency or employer for any transportation services. 24 2. An employment agency shall confirm the information in 25 the notice required by subsection 1 in writing and send a 26 copy thereof to the employee, by a method designated by the 27 employee, before the end of the employee’s first pay period. 28 However, an employment agency shall send any change in the 29 initial terms of employment to the employee immediately. 30 3. The employment agency shall post in a conspicuous place 31 in each of the locations where it does business a notice 32 of the requirements of this section and the name, internet 33 site address, and telephone number of the commissioner. The 34 commissioner shall prepare and publish on the commissioner’s 35 -1- LSB 5603YH (2) 85 je/rj 1/ 6

H.F. 2286 internet site a sample notice for use by employers that meets 1 the requirements of this section and, upon request, shall 2 facilitate the translation of the notice into a language other 3 than English. 4 4. This section shall not be construed to prohibit an 5 employment agency from directing an employee to employment by 6 telephone. However, the employment agency shall provide the 7 information required by subsection 1 by telephone at the same 8 time. 9 5. This section does not apply to a professional employee, 10 as defined in 29 U.S.C. §152, or to an employee who is a 11 secretary or administrative assistant whose main or primary 12 duties are described by the United States department of labor, 13 bureau of labor statistics, as involving one or more of the 14 following: 15 a. Drafting or revising correspondence. 16 b. Scheduling appointments. 17 c. Creating, organizing, and maintaining paper and 18 electronic files. 19 d. Providing information to callers or visitors. 20 Sec. 2. NEW SECTION . 94A.3B Transportation services. 21 If an employment agency or employer or a person acting 22 directly or indirectly in the interest of either offers 23 transportation services to or from a designated work site 24 to an employee and charges a fee for such services, the 25 employment agency or employer shall charge such employee not 26 more than the actual cost to transport such employee to or 27 from the designated work site. Such fee shall not exceed 28 three percent of such employee’s total daily wages and shall 29 not reduce the employee’s total daily wages below the minimum 30 wage earned for the day. If an employment agency or employer 31 or a person acting directly or indirectly in the interest of 32 either requires the use of such services by an employee, a 33 fee shall not be charged to the employee for such services. 34 If an employment agency or employer provides transportation 35 -2- LSB 5603YH (2) 85 je/rj 2/ 6

H.F. 2286 services to a designated work site to an employee on a day when 1 employment is not available, the employment agency or employer 2 shall fully refund any fee charged to the employee for such 3 services. 4 Sec. 3. Section 94A.4, subsection 4, Code 2014, is amended 5 by adding the following new paragraphs: 6 NEW PARAGRAPH . g. Refer an employee for employment by force 7 or fraud, for illegal purposes, or where the employment is in 8 violation of state or federal law. 9 NEW PARAGRAPH . h. Refer an employee for employment at any 10 location that is on strike or lockout without first notifying 11 the employee of such fact. 12 Sec. 4. Section 94A.4, Code 2014, is amended by adding the 13 following new subsections: 14 NEW SUBSECTION . 5. An employment agency or employer shall 15 not charge or accept a fee from an employee for the following: 16 a. Any good or service unless under the terms of a written 17 contract with the employee, which clearly states in a language 18 the employee can understand that the purchase is voluntary 19 and which provides that the employment agency will not gain a 20 profit from any cost or fee charged to the employee. 21 b. The provision of a bank card, debit card, payroll card, 22 voucher, draft, money order, or similar form of payment or 23 wages that exceeds the actual cost per employee. 24 c. Any drug test. 25 d. Any criminal history background check. 26 e. Transportation, except as provided in section 94A.3B. 27 f. Any good or service the payment for which would cause the 28 employee to earn less than the applicable minimum wage. 29 NEW SUBSECTION . 6. An employment agency or employer or 30 a person acting directly or indirectly in the interest of 31 either shall not deduct any costs or fees from the wages of 32 an employee without the express written authorization of the 33 employee. An employment agency or employer shall furnish to 34 the employee a copy of the signed authorization in a language 35 -3- LSB 5603YH (2) 85 je/rj 3/ 6

H.F. 2286 the employee can understand. 1 NEW SUBSECTION . 7. An employment agency or employer shall 2 not refuse to return on demand any personal property belonging 3 to an employee or any fee or cost that is charged to the 4 employee or accepted by the employment agency or employer in 5 excess of the amounts allowable under this chapter. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill makes various modifications to Code chapter 10 94A, which provides for regulation of employment agencies in 11 this state by the labor commissioner. “Employment agency” 12 is defined as a person who brings together those desiring to 13 employ and those desiring employment and who receives a fee, 14 privilege, or other consideration directly or indirectly from 15 an employee for the service. 16 The bill requires an employment agency to provide to each 17 employee referred for employment notice of certain information. 18 The notice must include contact information for the employment 19 agency, the agency’s workers’ compensation carrier, the 20 employer, and the commissioner. The notice must include a 21 description of the position. The notice must include the 22 designated payday, the hourly rate of pay, and whether overtime 23 may occur and be paid. The notice must include the daily 24 starting time and anticipated end time and, if known, the 25 expected duration of employment. The notice must include 26 information relating to meals and transportation. The required 27 information must be confirmed in writing and sent to the 28 employee before the end of the employee’s first pay period by 29 an employment agency, but any change to the initial terms of 30 employment must be sent immediately. 31 The bill requires an employment agency to post in each of the 32 locations where it does business notice of the requirements of 33 this bill and contact information for the commissioner. The 34 bill requires the commissioner to prepare a sample notice for 35 -4- LSB 5603YH (2) 85 je/rj 4/ 6

H.F. 2286 use by employers. 1 The notice requirements do not prohibit an employment agency 2 from directing an employee to employment by telephone, if the 3 employment agency also provides the required notification at 4 the same time. The notification requirements do not apply to 5 a professional employee as defined in federal law or to an 6 employee who is a secretary or administrative assistant who has 7 certain duties. 8 The bill places certain limitations on the fees an 9 employment agency or employer can charge an employee for 10 transportation services to or from a designated work site. 11 The bill prohibits an employment agency from referring 12 an employee for employment by force or fraud, for illegal 13 purposes, or where the employment is in violation of state or 14 federal law. The bill prohibits an employment agency from 15 referring an employee for employment at any location that is 16 on strike or lockout without first notifying the employee of 17 such fact. 18 The bill prohibits an employment agency or employer from 19 charging or accepting a fee from an employee for any good or 20 service unless under the terms of a written contract with the 21 employee; the provision of a bank card, debit card, or similar 22 form of payment or wages that exceeds the actual cost per 23 employee; any drug test; any criminal history background check; 24 transportation, except as provided in the bill; or any good or 25 service the payment for which would cause the employee to earn 26 less than the applicable minimum wage. 27 The bill prohibits an employment agency or employer from 28 deducting any costs or fees from the wages of an employee 29 without the express written authorization of the employee. 30 The bill prohibits an employment agency or employer from 31 refusing to return on demand any personal property belonging to 32 an employee or any fee or cost that is charged to the employee 33 or accepted by the employment agency or employer in excess of 34 the amounts allowable under Code chapter 94A. 35 -5- LSB 5603YH (2) 85 je/rj 5/ 6

H.F. 2286 A violation of Code chapter 94A is a simple misdemeanor and 1 is also cause for a civil penalty in an amount up to $2,000. 2 A simple misdemeanor is punishable by confinement for no more 3 than 30 days or a fine of at least $65 but not more than $625 4 or by both. 5 -6- LSB 5603YH (2) 85 je/rj 6/ 6